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A taxpayer queried whether a mixture of plant materials intended for consumption via a water pipe is subject to Tobacco Duties Tax (ILT). The Directorate-General for Traffic (DGT) ruled that, as the product is intended for smoking and is comparable to a tobacco product, it must be subject to ILT even if it contains no tobacco.
This ruling clarifies that the taxability of a product depends on its intended use and characteristics rather than the presence of tobacco itself, potentially expanding the scope of tobacco-related excise duties to herbal smoking mixtures.
The tax team reviews your specific situation.
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